Why Bitcoin’s 30% Surge Crushed Altcoins and Left Investors Crying

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Why Bitcoin’s 30% Surge Crushed Altcoins and Left Investors Crying

  • The rising Bitcoin dominance and the stagnant altcoin market cap suggest that Bitcoin is now running the crypto show and everyone else is just a guest star.
  • Meanwhile, Tether reserves have been trending downward all year, making it harder for altcoins to get their fair share of the crypto pie. Because who needs variety when you have Bitcoin, right?

Since April 20th, Bitcoin [BTC] has been riding high, flipping the $86.3k barrier from stubborn resistance to a kind of support that’s more like a safety net — just in case it falls again. The result? A 30% sprint in a month, soaring to a dazzling $111,880, like Bitcoin was auditioning for the role of the market’s superhero.

Of course, no hero’s journey is complete without a little drama. Bitcoin paused to catch its breath, dipping 5.4% over the past week and losing 1.2% in just the last 24 hours, because even superheroes need a coffee break.

Meanwhile, the altcoins have been as lively as a sleepy sloth for nearly three weeks, suggesting all the capital is hanging out with Bitcoin — probably at a fancy crypto nightclub, leaving altcoins in the corner whispering, “Maybe tomorrow.”

While Bitcoin’s long-term prospects look brighter than a disco ball, the altcoins remain stuck in a rut, unable to outshine their shiny, yet somewhat subdued, big brother. And judging by the looks of things, this won’t change anytime soon.

Bitcoin Calls the Shots, and Investors’ Wallets Are Running Dry

The Bitcoin Dominance (BTC.D) chart is basically the crypto version of a popularity contest, showing who’s winning and who’s just a bit player. Since 2023, Bitcoin’s share has been like that one friend who keeps dragging everyone along — growing faster than the altcoin crowd in a race they didn’t know they entered.

Even a quick dip in November 2024 didn’t derail Bitcoin’s broad upward trajectory, proving that sometimes, you just need to ride out the dips — like waiting for your coffee to brew, but much more profitable.

For altcoin enthusiasts, it’s not exactly Christmas just yet. The market cap remains stubbornly flat around $1.2 trillion, like a bland casserole at a dinner party — nobody’s excited, and everyone’s hoping it’ll get better.

Adding to the party pooper vibe, Bitcoin’s dominance keeps climbing, picking the pockets of altcoins and leaving them with less cash and fewer options. It’s the crypto equivalent of a game of Monopoly where Bitcoin keeps landing on Park Place.

Stablecoins and the Market Mood — Or Lack Thereof

Let’s talk about stablecoins — the dependable, unexciting friends of the crypto world. In 2024, Tether reserves shot up like a rocket, peaking at nearly $44 billion in February, making you think, “Wow, this market’s on fire!”

But then, the reserves started to wane, like a summer holiday fling, indicating waning buying power and explaining why altcoins are limping along, instead of sprinting ahead.

Because if there’s one thing that beckons a rally, it’s a robust stablecoin reserve. Alas, those reserves are dwindling faster than a cupcake at a weight-loss convention, leaving the market more sluggish than a Sunday afternoon.

And the Bitcoin rally? Probably boosted by big institutional players, like ETFs, who prefer their crypto straight and institutional-grade — less fun, more funds.

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2025-05-30 10:34